Transcript Chapter 15 Managing Quality and Performance

Chapter 15
Managing Quality and
Performance
(Regulating organizational
activities to make them consistent
with the expectations established
in plans.)
Steps in the Control Process
4. Take
corrective
action
Adjust
Performance If Inadequate
Feedback
Adjust
Standards
Establish
Strategic
Goals
1. Establish
standards of
performance
2. Measure
actual
performance
3. Compare
performance
to standards
If Adequate
Feedback
4. Do nothing
or provide
reinforcement
Organizational Control Focus
Feedforward
Control
Focuses on quality of
resources acquired
by organization (inputs)
(Selecting Locations,
Training Franchisees)
Production
Outputs
Organizational Control Focus
Concurrent
Control
Inputs
Focuses on quality of
task activities to transform
inputs into outputs
(Detailing Operating
Procedures and monitoring
them during food preparation)
Outputs
Organizational Control Focus
Feedback Control
Inputs
Production
Focuses on quality of
product and service
outcomes
(Customer surveys,
sales analyses)
Traditional Hierarchical
(Bureaucratic) Control
 Mechanistic,
Emphasizes External
Control
 Rules and procedures
 Hierarchy of authority
 Quality Control Department
 Technology
 Extrinsic Rewards
Decentralized (Clan) Control
 Organic,
Emphasizes Internal Control
 Based on Corporate Culture
 Implemented by
- Peer groups
- Self-control
- Empl. selection and socialization
 Increasingly necessary with Downsizing
 Both Extrinsic and Intrinsic Rewards
Total Quality Management
A
philosophy of organization-wide
commitment to continuous improvement
 Focuses on teamwork, customer satisfaction,
preventing defects, and lowering costs
 Requires more Decentralized (Clan) control
than traditional approach
 Gives workers responsibility for achieving
standards of quality
 Workers are trained in TQM and rewarded for
quality improvements
 TQM enriches jobs and motivates
TQM Techniques

Most companies that have adopted TQM
have incorporated:
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Quality Circle
Benchmarking
Six Sigma
Quality Partnering
Continuous Improvement